Flagstar's second quarter C&I loans grew by $2.0 billion, beating estimates, as the bank announced a $250 million buyback.

Flagstar Bank reported second quarter 2026 total revenues of $516 million and diluted EPS of $0.06, missing revenue estimates of $540.9 million while meeting EPS expectations. The results reflect the bank's third consecutive quarter of profitability and continued progress in its strategic pivot toward commercial lending.

Key Highlights

• Commercial & Industrial (C&I) loans increased by $2.0 billion, or 12% quarter-over-quarter, significantly outpacing the pre-report estimate of $1.4 billion in growth.
• The bank announced a new common stock repurchase program, authorizing the buyback of up to $250 million of its shares over the next 12 months.
• As part of its strategic balance sheet remix, the combined multi-family and CRE portfolios declined by $1.5 billion, or 4% from the prior quarter.
• The bank maintained a strong capital position with a CET1 capital ratio of 13.16%, supporting the new buyback authorization.